 |
| ▲ This photo released by the Fair Trade Commission on June 27, 2023, shows advertisements launched by Champstudy, asserting that the company has produced the highest number of civil servants among its competitors. (PHOTO NOT FOR SALE) (Yonhap) |
online education platform-penalty
Regulator fines major online education platform for misleading ads
By Kang Yoon-seung
SEJONG, June 27 (Yonhap) -- South Korea's antitrust regulator on Tuesday decided to slap a fine of 286 million won (US$218,900) on an online education platform for launching misleading advertisements on its achievements.
The fine on Champstudy came as its advertisements delivered incorrect information that it has ranked the top in the number of students who passed exams, according to the Fair Trade Commission (FTC).
The platform is a brand of Hackers Language Institute Co., a major private education company in South Korea that offers online and in-person English courses and preparation programs for civil service examinations.
"The advertisement slogans that Champstudy ranked No. 1 in terms of civil servant exams and licensed real estate agents were merely based on a consumer satisfaction survey carried out by a media company," the FTC said, noting such information was not clearly delivered to people.
The regulator pointed out that Champstudy mentioned the source at the bottom, occupying only around 5 percent of the surface, thereby making it difficult for consumers to read the part.
The FTC said Champstudy also claimed that its students passed exams "in the shortest period" without providing reliable sources.
"After carefully evaluating whether the advertisements have deceived or misled consumers, or impeded their ability to make rational decisions when selecting services, we have determined that they were unjust," it added.
Last year, the FTC slapped a penalty on Eduwill, another education service provider, for delivering similar advertisements.
The combined size of South Korea's market for online education reached 5 trillion won in 2021, up 8.5 percent from a year earlier, according to separate data compiled by the National IT Industry Promotion Agency.
(END)
(C) Yonhap News Agency. All Rights Reserved
